City Gas Trust, a wholly-owned subsidiary trust of CitySpring Infrastructure Trust, has agreed to establish a business venture with Osaka Gas of Japan to market and sell natural gas to industrial customers in Singapore.
This follows the signing of a Heads of Agreement in April 2012.
To effect the transaction, City Gas will contribute its existing business of marketing and selling natural gas to industrial customers in Singapore to a new entity (NewCo), to be owned 51% by City Gas and 49% by Osaka Gas.
Osaka Gas will pay S$39.2 million in cash in aggregate for its 49% stake.
Completion of the transaction is subject to NewCo obtaining a gas retailer licence from the Energy Market Authority of Singapore.
[mappress] LNG World News Staff, March 12, 2013; Image: iStock